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Feb 27, 2009 at 12:01 AMFeb 27, 2009 at 2:19 AM

As automakers worldwide deflate, Detroit begs for a bigger bailout and electric cars loom on the horizon, the decision by John J. Santilli Sr. this month to sell off his Cadillac franchise is not entirely surprising. But what may come as a stunner is the Brockton dealership owner, amid the troubled economic climate, is also expanding.

After almost four decades on the western end of Belmont Street, the Caddys are leaving the city.

As automakers worldwide deflate, Detroit begs for a bigger bailout and electric cars loom on the horizon, the decision by John J. Santilli Sr. this month to sell off his Cadillac franchise is not entirely surprising.

But what may come as a stunner is that the Brockton dealership owner, amid the troubled economic climate, is also expanding.

Santilli said his annual Nissan sales have outpaced Cadillacs threefold — 600 versus 200 each year — leading him to devote his new auto sales entirely to the Japanese brand.

“With Cadillacs, the volume didn’t justify it,” he said.

Although all signs seem to indicate fewer people are buying new cars, Santilli said expanding his Nissan operation is how he expects to stay afloat. The brand represents two things consumers now seek, he said.

“Obviously, it’s Japanese — number one — and it’s fuel-efficient,” Santilli said.

The Brockton dealership at 1016 Belmont St. will continue to sell used cars of all kinds, including Cadillacs, in addition to servicing all makes and models, he said.

The franchise sale means Santilli cannot sell new Caddys or handle factory warranty service on them, he said.

It’s a move that one industry expert calls “a very rational move.”

“At a national level, (similar shifts) could signal the demise of the traditional dealership model,” said C.B. Bhattacharya, a marketing professor at Boston University.

“One possible outcome of this crisis is that there will be a cultural shift in consumption patterns — consumers will buy or replace cars at a lower rate,” he said. “Hence, dealers may no longer be able to pledge their alliance to one single manufacturer.”

Growing his Nissan inventory will also mean “substantial” work expanding the showroom, expected to be completed in a few months, Santilli said.

Service is key to success

Local auto expert Junior Damato, a Lakeville resident who hosts “Talking Cars” on Brockton-based WXBR radio, said he didn’t think that Nissans would be the end of the road for Santilli.

“He’s got a tremendous amount of real estate just to have a Nissan franchise,” said Damato, who owns garages in Boston and Middleboro. “The next step for him might be a franchise such as Kia or Hyundai.”

Although the demographic may favor lower-cost import models, Damato said it will be harder to turn a profit. What will make the difference, he said, is service.

“Some of the bigger car dealers ... don’t know how to treat the customer,” Damato said. “There’s only so many times that the customers can get burnt.”

Cadillac brand endures

Santilli bought the dealership in 1982 from former owner John Dreystadt, whose father was a high-level executive in General Motors’ Cadillac division in Detroit.

At the dealership’s height, it housed four franchises — Nissan, Cadillac, Oldsmobile and Dodge — but the operation was akin to “a three-ring circus,” Santilli said.

“Honestly, when you have one franchise, there’s a lot more focus to it,” he said.

But the man who bought Santilli’s franchise for the luxury fleet, Rick Mastria, hopes for the opposite.

Diversifying his Route 44 dealership in Raynham is how he hopes to survive the downturn.

“For us, it was a way to add another product line to the portfolio,” said Mastria, whose dealership on the Auto Mile sells three other GM brands — Buick, Pontiac and GMC Truck.

“If I didn’t do it now, it wouldn’t have been available in a couple years when the economy turns around,” he said.

Even though rumblings continue over the future of GM — the company said it would cut 47,000 jobs by the end of the year, and is expected to eliminate a number of models — Mastria remained optimistic about the profitability of his new Cadillac franchise.

“There’s a certain segment of the population (who buys them),” Mastria said. “I wouldn’t say they’re recession-proof, but (Cadillacs) don’t have as much of a swing in their volume based on what’s going on in the economy.”

Damato, the local auto expert, pointed to the Cadillac Escalade and some of its sister models as a measure of its popularity.

“Cadillac has some fabulous cars, unlike the junk they sold in the ’70s, ’80s and early ’90s,” he said. “Cadillac is going to survive. Cadillac is going nowhere.”

Jessica Scarpati can be reached at jscarpati@enterprisenews.com.

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